Term Life Insurance is not usually renewable to a second term, but it can be. Some companies offer renewable term regularly; others do not offer it at all. When the term ends, many companies do change the premium to annually renewable term, however. That means the premium is locked in for one year only.
That is a great question! You will need to look at your individual policy to see if there is a renewability option. Some term policies will have them, and some will not. If your policy does, there will be a chart in your policy with a bunch of dollar amounts that increase dramatically each year after your policy reaches it's term. The premiums will normally increase by around 110%, and they get unaffordable fast. I hope that helps, thanks for asking!
Many policies are renewable after the initial term expires, and some are not. Check your policy language for conversion and continuation features.
The term policies that do offer the ability to continue coverage usually come with sharply higher rates. People could can provide evidence of good health usually will apply for a new policy at more affordable rates. Those that continue paying the much higher rates are those with health problems, which is why the rates are so high.
Many term life insurance policies are renewable to age 80 or 90. Unless you have some type of rider that guarantees renewability at reasonable rates, your premium during the renewal period will jump sky high. And of course, if you are still alive when the renewable period ends, you may be unable to find a new policy, especially if you have developed a serious health condition.
Rather than allow your term policy to enter the renewable period, it is usually a better option to convert part or all of your term insurance to permanent insurance while you can (if you indeed want your life insurance to continue). Not all policies are convertible, and if they are, they will have strict guidelines as to how long you have to convert them to permanent insurance. So check on these features long before your term will end.
In essence, converting will allow you to keep the same health rating you had when you applied for your term policy, regardless of your health at the time of conversion. The rates will be higher because you are older, and because you will be paying premiums for permanent insurance. However, they may not be as high as the renewable rates would have been, and your rates after converting often are locked in for your lifetime.
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The term policies that do offer the ability to continue coverage usually come with sharply higher rates. People could can provide evidence of good health usually will apply for a new policy at more affordable rates. Those that continue paying the much higher rates are those with health problems, which is why the rates are so high.
Rather than allow your term policy to enter the renewable period, it is usually a better option to convert part or all of your term insurance to permanent insurance while you can (if you indeed want your life insurance to continue). Not all policies are convertible, and if they are, they will have strict guidelines as to how long you have to convert them to permanent insurance. So check on these features long before your term will end.
In essence, converting will allow you to keep the same health rating you had when you applied for your term policy, regardless of your health at the time of conversion. The rates will be higher because you are older, and because you will be paying premiums for permanent insurance. However, they may not be as high as the renewable rates would have been, and your rates after converting often are locked in for your lifetime.